An important judgment of the Supreme Court regarding the parties interested in the auction regarding the recovery of the loan

- People-oriented guidance: H.S. Patel IAS (Retd.)

Financial Institutions - In which loans / loans given by recognized banks, co-operative banks etc. have a provision to take securities in a proper manner and accordingly encumbrances are made on the respective property / assets and such encumbrance is related to the revenue records - After being noted in the title deed, it is recorded in the second right of the sample no. 2 as well as in the property register. State Government Institutions / Banks etc. have a recovery mechanism and if no recovery is made after the efforts, the property concerned is auctioned off. SARFESI ACT 2006 was introduced by the Central Government as part of recovery for bank lending. (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act) which is described in this article is from Madhya Pradesh and in that case the process of auctioning the foreclosed property is in case of non-recovery despite the efforts of the concerned bank as per the provisions of this Act. The property to be sealed in the process belonged to the Hindu Undivided Family. The civil court and the Madhya Pradesh High Court dismissed the claim of the parties concerned that the civil court had no jurisdiction over the interests of other interested parties and the main reason was that the civil court did not have jurisdiction as per the provisions of the SARFESI Act.

Now looking at the facts of the case, the parties against the judgment of the Madhya Pradesh High Court have filed a civil appeal no. With the judgment of 30/10/2018, Justice K. S. Radhakrishnan and a. K. Sikri gave an important judgment stating that the jurisdiction of the SARFESI Act of Sections 12 (3) and 4 has been clarified. At the same time clarifying the provisions of section 13 of the DRT Act (Debt Recovery Tribunal Act), the judgment is important for the general public as in many cases the joint Hindu ownership of the joint Hindu undivided family's land / property without an undivided share. The judgment also states that the power to determine such dispute / arrears is beyond the provisions of the SARFESI Act when the burden is generated and later the land of the person concerned is also auctioned by the concerned financial institution. The cause of the dispute arose when the land in question was auctioned off but the land was not handed over to the bidding party.

After stating the essence of the aforesaid judgment, this case belongs to the land of village Sengav, Anjad Road, Barwani Khasra-Ray Survey-201/2 and 104/2 of Madhya Pradesh and the plaintiffs in this case raised the question of title on the basis of joint Hindu family property Property) was derived from the income of the joint family property as a stakeholder and the property concerned should not be treated as joint Hindu family property on its basis but only as the sole property of the defendants and the Hon'ble Supreme Court ruled on the same issue. The interpretation that the civil court is prohibited to decide on the right / share of the joint undivided person under the provisions of the Act is erroneous and it is decided that the civil court has the power to determine the right of the disputant under sections 12 and 3 of this Act. Accepted. This is established by the fact of the whole case and when the Hon'ble Supreme Court has given its verdict it takes the place of Law of Land.

So for the masses and thus for the public this matter is important for information as well as for their right because even in Gujarat most (lands / properties / undivided) are divided and many such cases also occur because one of the occupiers of joint property. If the brother submits a loan or burden and fails to repay it and the property given in the land is auctioned off, the interests of the remaining interested parties are adversely affected. And in which there is no need to register the document so that instead of waiting till the occupier of any land dies and inherits, the name should be entered in the co-partner with the consent of the surviving parties and recorded in the title deed of the revenue record as per the partition deed. Disputes do not happen later.